A bushing is a cylindrical liner which is normally used as a guide to axially align a rotatable member, such as a shaft. Although most bushings have smooth external surfaces, some have been manufactured with a threaded bore which provides a threaded hole for receiving a stud or a plug. These types of bushings are either slotted or otherwise formed to facilitate their thread cutting action. Although these bushings are useful for specialized purposes, they leave much to be desired in the way of axially aligning a smooth shaft within a housing. Up until now, it has been necessary to machine a counterbore into the housing to receive the bushing or to align the bushing within the housing by means of splines or other types of supporting members. Now an improved bushing assembly has been developed which permits a bushing to be physically positioned within a housing such that exact axial positioning of the journaled shaft is possible.